We present a Theory of Contracts under costly enforcement in the context of a dynamic relationship between an uninformed buyer and a seller who is privately informed on his persistent cost at the outset. Public enforcement relies on remedies for breach. Private enforcement comes from severing relationships. We first characterize aggregate enforcement constraints ensuring that trading partners d...

The effects of psychological contract violation are the subject considerable research. Yet, their in work arrangements with more than two parties largely unknown. Multi-party differ from traditional ones because individuals may be vulnerable to breach and by one party, potentially directing negative emotional responses not only towards responsible party but also displacing it other (innocent) p...

This paper focuses on the concept of a psychological contract. It argues that research analyzing the employment relationship through this concept tends to overlook the constraints which actually mark the actors' behavoirs. A lot of papers dealing with the Psychological contract approach conveys the view of a free actor. To support this thesis, this paper will first review some of the main featu...

In public-private partnership (PPP) projects, the government plays a role as both regulator and participant. Trust between private sector is important it may affect project performance even cause problem of breach contract, which lead to failure. Little known, however, about formation evolution mechanisms trust in this context. This study analyses complex PPP networks. An evolutionary game mode...